ECL26400 - ECL example: no accounting period ending within the financial year, but there is an accounting period ending within 3 months of the financial year

If there is no accounting period which ends within the financial year, you must use the accounting period which ends within 3 months of the end of the accounting period as the relevant accounting period (see [ECL22300] for the guidance on this).

For example, Alpha Ltd’s first accounting period ends on 30 April 2023, so there is no accounting period ending within the 2023 financial year. However, Alpha Ltd was carrying on a regulated business in the 2023 financial year, and is therefore within scope to the ECL.

The relevant AP is therefore the AP that ends during the period of 3 months beginning with the end of the FY 1 April 2022 to 31 March 2023, which is the accounting period of 1 May 2022 to 30 April 2023.